The shares of GlaxoSmithKline (GSK) cheered on Monday after the British pharmaceutical giant announced that its chief executive, Emma Walmsley, would step down to make way for insider Luke Miels to lead its affairs. GSK stock rose 2.25% to about $41 around 11:00 a.m. EDT.
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The switch in leadership comes at a time when the company is making efforts to bolster its drug pipeline and compete against rivals such as Pfizer (PFE) and Merck (MRK). It also comes as U.S. tariffs on pharmaceutical imports have kept companies in the sector on their feet. Last week, President Donald Trump threatened a fresh 100% tariff on foreign drugs.
Walmsley spearheaded the spinning off of the company’s healthcare division into Haleon (HLN) while helping to focus the pharma company on its core areas of cancer and infectious diseases. However, while GlaxoSmithKline has shown consistent growth, doubts remain about the company’s drug pipeline, even as patent expiries come into focus.
Miels Gets Delivery Mandate
Miels, currently serving as GlaxoSmithKline’s chief commercial officer, is set to give “strong focus on pipeline delivery” when he assumes the new role and joins the company’s board in January next year. The C-suite executive has been with the pharmaceutical company for about eight years, following senior roles at AstraZeneca (AZN), Roche (RHHBY), and Sanofi (SNY).
In its filing with the U.S. securities watchdog, GlaxoSmithKline stated that Miels will concentrate on “preparing for the next wave of R&D through bold adoption of technology and promoting exceptional patient outcomes.” He is expected to exceed the company’s 2030 outlook.
Meanwhile, the new appointment, which some analysts believe is in the right direction, follows GlaxoSmithKline’s recent move to dedicate $30 billion in investment to expand its manufacturing and research base in the U.S. This is even as President Trump has touted Leucovorin, the London-based company’s controversial and old drug, as a possible solution to autism.
Is GSK a Good Stock to Buy?
Turning to Wall Street, GlaxoSmithKline’s shares currently have a Moderate Buy consensus recommendation based on one Buy and two Holds assigned by Wall Street analysts over the past three months. However, the average GSK price target of $43.33 indicates a 6.23% growth possibility from the current level.
